Quarterly report pursuant to Section 13 or 15(d)

Reserve for Product Warranties

v2.4.0.8
Reserve for Product Warranties
9 Months Ended
Sep. 30, 2014
Reserve for Product Warranties [Abstract]  
Reserve for Product Warranties

8 - Reserve for Product Warranties

We provide a warranty on all medical device products that is generally one year in length. We also sell extended service agreements on our medical device products that are generally over one year in length. Service for domestic customers is provided by Company-owned service centers that perform all service, repair, and calibration services. Service for international customers is provided by a combination of Company-owned facilities and vendors on a contract basis.

We have accrued a warranty reserve, included in accrued liabilities on the accompanying balance sheets, for the expected future costs of servicing products during the initial warranty period. We base the liability on actual warranty costs incurred to service those products. Additions to the reserve are based on a combination of factors including the percentage of service department labor applied to warranty repairs, as well as actual service department costs, and other judgments, such as the degree to which the product incorporates new technology. The reserve is reduced as costs are incurred to honor existing warranty obligations.

The details of activity in the warranty reserve are as follows (in thousands):

 

Three Months Ended September 30,

Nine Months Ended September 30,

 

2014

2013

2014

2013

 

 

 

 

 

Balance, beginning of period

$2,688

$2,070

$3,142

$2,260

Acquisition warranty assumed

--

--

--

191

Warranty accrued for the period

668

530

1,078

1,328

Repairs for the period

(646)

(566)

(1,510)

(1,745)

Balance, end of period

$2,710

$2,034

$2,710

$2,034